This paper examines the labor market for mutual fund managers and how their career concerns influence their behavior. It finds that managerial turnover is sensitive to a fund's recent performance, with younger managers being more performance-sensitive. The study suggests that younger managers may have less discretion in managing their funds, leading them to be more likely to lose their jobs if their fund's beta or unsystematic risk deviates from the mean for their fund's objective group. Additionally, younger managers may be more risk-averse in selecting their fund's portfolio, as the shape of the job separation-performance relationship may provide an incentive for them to be risk-averse. The study also finds that younger managers take on lower unsystematic risk and deviate less from typical behavior than their older counterparts. Furthermore, the paper suggests that firing decisions may be influenced by a desire to stimulate inflows of investment into the fund. The study uses data on 453 portfolio managers who had primary responsibility for a growth or growth and income mutual fund at the start of 1992, 1993, or 1994. The results suggest that younger managers are more likely to be separated from their positions if their actions deviate from the norm, and that the separation-performance relationship may be influenced by the manager's age. The study also finds that the probability of separation is more sensitive to performance for younger managers, and that the shape of the separation-performance relationship may provide an incentive for young mutual fund managers to be risk-averse in selecting their fund's portfolio. The paper concludes that the desire to avoid separation is one of the incentives a manager faces, and that managerial turnover may be influenced by a desire to stimulate inflows of investment into the fund.This paper examines the labor market for mutual fund managers and how their career concerns influence their behavior. It finds that managerial turnover is sensitive to a fund's recent performance, with younger managers being more performance-sensitive. The study suggests that younger managers may have less discretion in managing their funds, leading them to be more likely to lose their jobs if their fund's beta or unsystematic risk deviates from the mean for their fund's objective group. Additionally, younger managers may be more risk-averse in selecting their fund's portfolio, as the shape of the job separation-performance relationship may provide an incentive for them to be risk-averse. The study also finds that younger managers take on lower unsystematic risk and deviate less from typical behavior than their older counterparts. Furthermore, the paper suggests that firing decisions may be influenced by a desire to stimulate inflows of investment into the fund. The study uses data on 453 portfolio managers who had primary responsibility for a growth or growth and income mutual fund at the start of 1992, 1993, or 1994. The results suggest that younger managers are more likely to be separated from their positions if their actions deviate from the norm, and that the separation-performance relationship may be influenced by the manager's age. The study also finds that the probability of separation is more sensitive to performance for younger managers, and that the shape of the separation-performance relationship may provide an incentive for young mutual fund managers to be risk-averse in selecting their fund's portfolio. The paper concludes that the desire to avoid separation is one of the incentives a manager faces, and that managerial turnover may be influenced by a desire to stimulate inflows of investment into the fund.